Allot Investor Presentation - (NASDAQ, TASE: ALLT) May 2020 - Investor Relations
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Allot Investor Presentation (NASDAQ, TASE: ALLT) May 2020
Forward Looking Statements
This presentation contains forward-looking statements, which express the current beliefs and
expectations of Company management. Such statements involve a number of known and unknown
risks and uncertainties that could cause our future results, performance or achievements to differ
significantly from the results, performance or achievements set forth in such forward-looking
statements. Important factors that could cause or contribute to such differences include risks relating
to: our ability to compete successfully with other companies offering competing technologies; the
loss of one or more significant customers; the impact of government regulation on demand for our
products; our failure to increase the functionality and features of our products; our ability to keep
pace with advances in technology and to add new features and value-added services; the failure of
our products adversely impacting customers’ networks; managing lengthy sales cycles; greater
operational risk associated with large projects; our dependence on third party channel partners for a
material portion of our revenues; our failure to comply with regulatory requirements; our
dependence on traffic management systems and network management application suites for the
substantial majority of our revenues; the loss of rights to use third-party solutions integrated into our
products; undetected errors in our products; our dependence on a single third-party subcontractor for
a significant portion of our products; and other factors discussed under the heading "Risk Factors" in
the Company's annual report on Form 20-F filed with the Securities and Exchange Commission.
Forward-looking statements in this release are made pursuant to the safe harbor provisions contained
in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made
only as of the date hereof, and the Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information, future events or otherwise.
2
Allot is a provider of leading innovative
network intelligence and security solutions for
service providers and enterprises worldwide,
enhancing value to their customers.
Markets Installed Base Company Highlights
• Communication • Hundreds of CSPs • ALLT (NASDAQ, TASE)
Service Providers (CSPs)
• Tier-1 operators • 2019 revenue: $110M
• Mid – Large Enterprises • Global Presence • 2020 Guidance: $135M-$140m
• Strong Balance Sheet: Cash: $111
3
The
Market
Trends
CONNECTIVITY VULNERABILITY COMPLEXITY
54% - 68%
The top priority The care about privacy & security when
drive growth via digital media, accessing the internet via mobile phones2
CSP IT services, IoT and security1
Consumer
45%
will to pay for security services3
The The next big thing for CSPs…
Opportunity Not just broadband, Secured Broadband
1. Gartner: Market Trends: Top 10 Priorities for CSPs Worldwide, 2017-2020 2.KPMG, Deloitte 3.Consumer Survey, Deloitte 4
The Allot Opportunity
OECD Connectivity
Revenue $600B* 1.7B
Mobile and Fixed Broadband Consumers
CSP Potential Revenues $30B (5% incremental revenue)
from Security
$6B
Addressable Market (20%)
* OECD.org June 2017 5
Allot Secure
anywhere, any device, any threat protection
6
Unified Customer Centric Experience
Protecting all device, across all platforms Network-based IoT
including IoT, in smart Security
homes and offices - Protects against
- Integrates with existing malware, botnets and
home router DDoS attacks
- Full home network visibility - Behavior profiling
- Behavior assurance
Network based security
from Malware, Phishing,
Ransomware, crypto
mining, and harmful sites
- Frictionless Onboarding Inline mitigation of
Continuous - ~50% penetration
- Mass activation DDoS attacks
Off-Net Security - Inbound and Outbound
- Protects when accessing - Customer engagement:
Periodic personalized reports - Detection and mitigation
public WI-FI under a minute
- Integrates 3rd party client - Protects network
elements from overload
7
Protecting Mobile Users
>23M Up to 50% €1 10 High NPS
Mobiles Adoption Monthly Markets
Globally
In the first nine months of 2016 Our Secure Net product is already
Vodafone Secure Net blocked 154 €160 million in revenue...
million threats, 50,000 of them we have been building quietly
ransomware attacks” and we will leverage on”
Economia El Pais, Madrid Oct. 31, 2016 Vodafone CEO Vittorio Colao, May 15, 2018
8
Touching the Subscriber
Security Icon Touch Icon to access
Secure and Manage your Home Network
indicates protection personal service portal
edition.cnn.com
9Penetration Rates by Markets
% Penetration
Months Since Implementation 10Security Traction
CEE OPERATOR
US OPERATOR
EMPRESAS Austria
Hutchison Group
TIER2
APAC OPERATOR
TIER2
LATAM OPERATOR
SECaaS
Recurring
MAR* Total 2019: $85M 2020 Guidance: $140M
Security *MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon
Revenues transaction signature and constitutes an approximation of the theoretical annual revenues Allot 11
would receive if 100% of the customer’s subscribers, as estimated by Allot, signed up for the service.Allot Smart
insightful, inline, intelligence
12Allot Smart
Core Technology Allot Solutions Highlighted Products
• DPI (Deep Packet Inspection) Policy Control & Charging
for very large pipes SmartVisibility (ClearSee)
- Custom reports
Network Intelligence - Target customer segments
• Leverages Machine Learning - Facilitate real-time trouble shooting
- Detailed data records
and Artificial Intelligence
Intelligent Traffic Management
• COTS hardware
SmartTraffic QoE
• NFV compatible QoE (Encrypted) - Reduce congestion
- CAPEX savings of 5-15%
• VMware and OpenStack
Regulatory Compliance
13Telecom Customers – Visibility & Control
Reliance Jio
216+ Million
subscribers, 18 Tbps
14
Partial customer listMoving Forward
DPI Security/Visibility & Control
CAPEX Recurring Security Revenues
Preset Machine Learning
& Artificial Intelligence
Appliance Virtualization (NFV)
4G 5G
* SECaas – Security-as-a-Service
15Financials
Revenue ($M)
110
96
82
31
29
27 27 28
24 25
22 23
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2018 2019 2020
Cash (31.03.20) $111
2017 2018 2019
17$M 2019 2020YTD 2020 Guidance
>2019 Revenue
Booking 179 Reported Annually$M Q4 2019 Q1 2020
Revenue 30.6 29.3
Gross Margin 69% 75%
Operating 22.8 22.5
Expenses
Operating Profit (1.8) (0.6)
(Loss)
Non-GAAP 1920
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